Transaction Cost Economics Suggests That Going It Alone Is Not

question 11

True/False

Transaction cost economics suggests that going it alone is not a substitute for strategic alliances since they are best chosen only when other alternatives are not viable.

---

Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used in accounting to allocate manufacturing overhead costs.

Cost Driver

A factor that causes a change in the cost of an activity, essentially determining the level of expense incurred in producing a product or service.

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed and predicted values.

Squared Deviations

The squares of the differences between individual observations and the mean of those observations, used in variance and standard deviation calculations.